British firm could get early victory in legal fight with Monroe County if Scott signs property tax bill

A
bill on Gov. Rick Scott’s desk could
save a British company millions of dollars, while stymieing the Monroe County
Property Appraiser’s office and setting a new precedent for calculating property
taxes at privatize military housing.

SB
354, which passed the Legislature with bipartisan support last month, clarifies
key provisions in Florida’s
tax code, determining who is--and who isn't--eligible for property tax exemptions.

Those
provisions are at the heart of a pending lawsuit between the Monroe County
Property Appraiser and Southeast Housing, the subsidiary of UK-based Balfour
Beatty Communities.

Monroe County
sent Southeast Housing a bill for more than $11 million in back property taxes
last year, after discovering that the company was renting units to civilians instead of exclusively to the military.
Southeast took ownership of 890 Key
West housing units from the U.S. Navy in 2007, under a
deal inked through the U.S. Military Housing Privatization Initiative.

Southeast
had been operating free of property taxes for several years, before Monroe County
said the exemption was not appropriate. The property appraiser says Southeast
should not get a government exemption since it is operating units for
civilians.

Southeast
has filed a lawsuit challenging the $11.3 million tax bill, and seeking permanent
exemption.

Southeast Housing's attorney, David
Paul Horan, did not immediately return a phone call requesting comment, and an
assistant said he was in a meeting Friday afternoon.

If
Scott signs the bill, the lawsuit could be impacted. SB 354 states that all
governmental and “quasi-governmental” properties operating under the U.S.
Military Housing Privatization Initiative are tax-exempt. However, taxes can be
charged on the portion of units rented to civilians, under an amendment filed before the bill passed.

Rep. Holly Raschein, R-Key Largo, said she that amendment was crucial. She voted against the bill in one committee, but voted for it once it was changed to ensure that only units rented to military families would be tax exempt.

“At the end of the day, a bill was going to pass and I’m
glad this was the version that passed,” she said.

It’s
unclear how many of the 890 Key West
units owned by Southeast have been occupied by civilians, though reported estimates
range from 30 percent to 74 percent.

Scott’s
office said the governor is “reviewing” the bill. He has until Wednesday to
sign or veto it.

Scott
Russell, the Monroe County Property Appraiser, did not immediately return a
call to his office.

While
Monroe is the first Florida county to charge taxes on privatized
military housing, the outcome of the bill and the lawsuit could set an
important precedent. Similar privatized military housing facilities exist in Pensacola, Jacksonville, Panama City, Escambia County
and elsewhere.